According to reports from victims of hurricanes and floods, even those who have flood insurance may not be able to repair the damage caused to their homes by tropical storms. Homeowners claim that their insurance companies are hesitant to pay out even a fraction of the cost of the damage.

Victims Struggle While Flood Insurance Companies Refuse to Pay Up

According to Louisiana woman Kemberley C., her 2,000 square foot home was flooded in 2016. The flood waters that damaged her home reached seven feet in height, and destroyed much of the inside of her house.

Although Kemberley claims that multiple contractors have estimated that repairing her home will cost approximately $140,000, in addition to the estimated $110,000 required to elevate the home and bring it up to code, her insurance company has only sent her $87,000.

Kemberley spoke to her local news about the experience. “My husband and I worked extremely hard to pay for that almost $3,000-a-year flood insurance while supporting our children, while paying this (mortgage) note. We didn’t plan on a flood. But you have insurance because insurance ensures that you will be taken care of. That’s why you pay for it. And that’s not what happened.”

According to Louisiana Insurance Commissioner Jim Donelon, insurance programs have become reluctant to pay out flood claims due to the massive damage caused by hurricanes and tropical storms over the past few years. Hurricane Katrina and Hurricane Sandy left the National Flood Insurance Program approximately $25 billion in debt, meaning that there simply isn’t enough money to cover all of the claims. Although $16 billion of this debt was canceled in October 2017, the program is still underwater.

The Uncertain Future of Flood Insurance

The NFIP was set to expire in 2017, and has been temporarily renewed 14 times since. The latest extension was authorized in November 2019 and keeps the program open until December 20. However, as the program continues to remain in debt, its future, and the futures of home owners awaiting their flood insurance payouts remain uncertain. Although the NFIP is allowed to borrow up to $30 billion from the U.S. Treasury in order to pay out claims to policyholders, the program has already borrowed two-thirds of this sum.

In addition to the lack of funding available, some investigations have also indicated that insurance companies may have purposefully falsified reports and documentation in order to pay out lower settlement amounts for some claims. These falsified documents may have been used to deny claims or offer lower settlement sums.

Victims who believe that they were unfairly or fraudulently denied their owed flood insurance benefits may be eligible to seek compensation with the help of a qualified attorney. Victims who pursue litigation may be able to collect compensation for property damages and other costs. Even if your insurance company has already paid out a flood insurance settlement to you, a qualified attorney may be able to review your case and ensure that you have received the compensation you’re entitled to.